Value Added Tax (VAT) is a type of indirect tax that is imposed on goods and services. In one of the most important reforms of the country’s public finances in over the past 50 years, India has finally launched much delayed Value Added Tax (VAT) from 1st April, 2005 in 21 states. VAT has...

This paper is concerned with a policy oriented macroeconomic experiment involving an international economy with a relatively small home country and a large foreign country. It compares the economic performance of two alternative tax systems as a means to finance unemployment benefits: a...